OIL FUTURES: Crude Up On Weaker Dollar, Stronger Equities

FlorenceTan

SINGAPORE (MarketWatch) -- Crude futures rose nearly $1 Monday on support from a weaker US dollar against the euro and stronger equities markets in Asia, led by Chinese stocks.

Oil will be seeking directional cues from fresh data on US economic indicators and oil inventories later this week, said David Moore, commodities strategist at Commonwealth Bank of Australia.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $77.32 a barrel at 0625 GMT, up 97 cents in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose 93 cents to $77.24 a barrel.

US October retail sales data is due at 1330 GMT, while the producer price index and industrial production will be out tomorrow. The consumer price index will be released Wednesday.

A steadily weakening dollar has prompted investors to turn to crude oil futures as a safe haven, especially with oil priced in the greenback becoming cheaper for holders of other currencies.

"The potential double bottom in the US dollar is the biggest factor going forward," said Peter Beutel, president of trading advisory firm Cameron Hanover, in a note.

Oil's fundamentals "will get a chance to shine through" if the lows reached by the US dollar hold, he added.

"It's a continuation of past trends and current problems. Bets against the U.S. dollar are still increasing," he said.

Stephen Schork, editor of the energy advisory newsletter The Schork Report, said: "Forget about fundamentals. Should the dollar take another tumble this week, odds are short (good) crude oil will be right back at $80."

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